Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs: Based on the above information, which of the following would not be treated as a product cost:

Question

Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs:  Based on the above information, which of the following would not be treated as a product cost:

Quizplus · Accepted Answer

Selling, general, and administrative costs (SG&A) are normally expensed in the period in which they are incurred. Because of this recognition pattern, nonproduct expenses are sometimes called period costs. In this case, the period costs are comprised of the office manager's salary and the insurance and taxes on selling and administrative offices.

Steuben Company Produces Dog Houses